Brookfield Asset Management’s 550MW Bikaner solar project in Rajasthan has raised US$105m-equivalent of long-term non-convertible debentures from International Finance Corp. The NCDs were issued by a group of special purpose project vehicles. The total project cost is estimated at US$317m-equivalent.
The interstate transmission system-connected project will supply green energy to commercial and industrial customers under long-term power purchase agreements, and sell energy on the merchant market via exchanges. The Bikaner district is in Thar, western India.
In March, Brookfield commissioned the project’s 268MW phase one. Phase two will increase capacity to 550MW. Jakson is EPC contractor. The SPVs are owned by BGTF Holdings, which is 80% owned by Brookfield Asset Management and 20% owned by Brookfield Renewable. Brookfield Global Transition Fund is an equity investor.
Brookfield managing director for renewable power and transition Nawal Saini said that Brookfield intends to grow its renewable and energy transition footprint in India focusing on both state utility and C&I offtakes. Brookfield has a portfolio of more than 25GW of renewable power assets in operation and in development in India.
Imad Fakhoury, IFC's regional director for South Asia said: "The novel procurement options underscore the role of hybrid transactions in scaling up investments in renewables, increasing market competitiveness, and offsetting the energy sector's carbon footprint, key to achieving India's climate goals."
